Alexander Gromnitsky's Blog

Jack Tramiel's cons

Latest update:

Turns out, the founder of Commodore Int. (the company that produced the cult Commodore 64 devices) was a man w/ a grim past:

'The darkest accusation about Jack Tramiel, however, dates back to his early days in Canada. During that time, Commodore became associated with the Atlantic Acceptance Corporation and one of the biggest financial scandals in Canadian history.

In 1965, a financial firm named Atlantic Acceptance collapsed, leaving behind millions of dollars in unpaid loans. A four-year investigation into the collapse revealed fraud on the part of C. Powell Morgan, the president and controlling stockholder of Atlantic Acceptance, who was also the chairman of Commodore. The investigation also showed that Atlantic Acceptance had made large loans to Commodore.

What was wrong with that? The Canadian report said there had been heavy insider trading of Commodore stock for the apparent purpose of bolstering share prices. It also stated that Commodore issued misleading financial statements and letters to shareholders. The report said Tramiel and his partner had created two companies “with nominal capital and no assets,” borrowed from Atlantic and re-lent to Commodore at a higher interest rate, pocketing the difference. The report went on to say that Powell Morgan had paid a “notoriously fraudulent stock promoter with established links in the world of organized crime” to tout Commodore stock in Europe through a financial newsletter, with Tramiel’s knowledge and consent.

Tramiel was never indicted, and C. Powell Morgan died before the commission investigating the Atlantic Acceptance collapse concluded its work. He later moved his headquarters back to the United States.'

(From The Ultimate History of Video Games by Steven Kent.)


Tags: quote, ойті
Authors: ag